Gun Makers Piling Up Losses

Given the Parkland School shooting, we have had several clients inquire if we own gun stocks — which given our ownership of broadly diversified indices (Vanguard, DFA, Black Rock, Wisdom Tree, etc.), was probable. It turns out that a $1 million 70/30 portfolio owns about $300 worth — 0.03% — of gun and ammo stocks.

The chart above, via Dave Wilson, could be a case of changing political climate with regards to guns. The stocks of gun and ammo makers seem to be reacting very differently over the past year or two than they have during the prior 8 years. Whether it is the lack of a focused anti-gun “villain” like Barrack Obama (?!) to scare more gun sales, something is different this time.

Consider the performance of these companies since November 2016 electoral victory for President Trump: